Contracts
Under Texas law, novation in a real estate contract means:
ASigning a new listing agreement
BSubstituting a new contract or new party for an existing one, releasing the original party from liability✓ Correct
CAdding an addendum to an existing contract
DConverting a residential contract to a commercial one
Explanation
Novation substitutes a new contract for an old one, or a new party for an old party, with all parties' consent. The original obligation is extinguished and replaced by the new agreement.
Related Texas Contracts Questions
- The Texas TREC Seller's Disclosure Notice (OP-H) is required to be delivered by the seller to:
- A Texas seller counteroffers the buyer's offer with a higher price. The buyer then accepts the counteroffer with minor changes. This creates a:
- When a Texas seller counters a buyer's offer, the original offer is:
- The TREC Seller Financing Addendum is used when:
- The Texas TREC 'Addendum for Property Subject to Mandatory Membership in a Property Owners Association' is required when:
- A Texas listing agreement specifies that the broker is entitled to a commission if the property is sold to 'any buyer procured by the broker.' This language creates a(n):
- The TREC 'Non-Realty Items Addendum' is used to include in the sale:
- In Texas, a contract for the sale of real estate must be in writing to be enforceable under the:
Practice More Texas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Texas Quiz →